Which? calls for pensions dashboard but obstacles remain
Consumer group Which? has called on the government to introduce a pensions dashboard, but experts say there are still significant barriers to overcome before it becomes a feasible option.
The idea of a pensions dashboard, a tool allowing people to view all their retirement assets in one place, was mentioned by the Financial Conduct Authority in its review of the annuities market in 2014. Subsequent research by provider B&CE has shown strong support for the concept among savers.
The FCA and [Pensions] Regulator would have to work closely together to make sure they regulated in the same way
Populus, on behalf of Which?, interviewed 1,178 UK adults who had either retired in the last five years with a personal pension, or were aged over 50, employed and had a personal pension.
The research showed 21 per cent had never checked how much they had saved in total in their pension pots. 37 per cent said they found it difficult to keep track of their pension pots.
Many also said they would not know how to find out the details of their pot, at 21 per cent of respondents.
In a statement accompanying the research, Which? said it “supports the reforms that now give people more freedom and choice in how to access their pension savings”.
“However, we are calling on the government to lead on the introduction of a ‘pensions dashboard’ without delay, to give people easy access to all the key information about their pensions and savings in one place.”
Independent organisation the Money Advice Service, along with the Association of British Insurers and other bodies, is working on a “pension finder dashboard project” at the moment.
The service said in a statement: “We are currently identifying different approaches to delivering this dashboard, considering the customer journey for various options and identifying policy and regulatory impacts.”
The service will launch a White Paper recommending next steps in the summer.
Implementation barriers
Kate Smith, head of pensions at provider Aegon, warned that while the technology needed to create a dashboard was available, work would be needed to ensure consumer safety and compliance with the Data Protection Act.
“Lots of protections need to be in place,” she said. “The FCA and [Pensions] Regulator would have to work closely together to make sure they regulated in the same way.”
She added that security could take the form of high barriers to entry for providers seeking access to the platform.
“You don’t want to give scammers access to all your customers’ details and funds,” she said.
Martin Palmer, head of corporate funds proposition at provider Zurich, said the sheer size of the market and number of stakeholders who would need to contribute made gradual implementation the best way to make the dashboard a reality.
“For it to be really valuable you want as many people as possible to contribute towards it.”
He suggested a dashboard should start with auto-enrolment schemes and then expand to wider defined contribution before incorporating other areas.